Primary sees IBK, Tecnoglass; Abu Dhabi, Kuwait, Biostime, Aeropuertos Argentina line up deals

By Christine Van Dusen

Atlanta, Jan. 23 – Industrial Bank of Korea (IBK) and Colombia’s Tecnoglass Inc. sold notes on a Monday that had investors keeping an eye on President Donald Trump, as well as bonds from Turkey.

“It is fair to say that the cloud of uncertainty has not been lifted yet, but in line with the new administration’s America First policy, international trade agreements seem to be on the top of the agenda,” a London-based analyst said. “While fears of a more protectionist U.S. might therefore [become reality] sooner than later, the weekend was short of revealing further details on tax cuts and fiscal stimulus.”

Investors also continued to watch Turkey.

“Amid the recent sell-off in the lira and widening in Turkish credit, concerns on the Turkish central bank’s limited room to counteract movements in capital flows have mounted,” the analyst said. “While the [central bank] could intervene in the currency markets, its net reserves are considered as low at around $38 billion as of Jan. 13.”

Investors in Turkish bonds, therefore, are “demanding a tightening in liquidity,” he said. “In the meantime, market focus has shifted to tomorrow’s rate decision” and possible downgrades from Moody’s Investors Service and S&P.

“A downgrade is more likely than not,” the analyst said. “In particular, Turkey’s economic performance remains under pressure from the coup attempt and prolonged political instability under the state of emergency, as well as lower income from tourism.”

In deal-related news, Abu Dhabi, Kuwait, China’s Biostime International Holdings Ltd. and Aeropuertos Argentina 2000 SA took steps toward the primary market.

IBK prices notes

In its new deal, South Korea’s IBK sold $300 million 2¼% notes due Feb. 6, 2020 at 99.816 to yield 2.314%, or Treasuries plus 85 basis points, a market source said.

The notes were talked at a spread in the 90 bps area.

Commerzbank, Goldman Sachs, HSBC, MUFG Securities and Nomura Securities were the bookrunners for the Regulation S deal. IBK Securities was co-manager.

The lender is based in Seoul.

Tecnoglass sells bonds

Also on Monday, Colombia’s Tecnoglass priced $210 million 8.2% notes due Jan. 31, 2022 at 98.798 to yield 8½%, a market source said.

The company previously canceled plans for up to $225 million bonds due in five, six or seven years.

BofA Merrill Lynch and Morgan Stanley were the bookrunners for the deal.

Tecnoglass is a Barranquilla, Colombia-based architectural glass transformation company that provides glass, windows and aluminum products for the global residential and commercial construction industries.

Abu Dhabi on roadshow

Abu Dhabi is marketing a possible issue of notes, a market source said.

HSBC is leading the roadshow, which will be held in Asia.

Other details were not immediately available on Monday.

Kuwait picks bookrunners

Kuwait has mandated six banks to for a dollar-denominated issue of Islamic bonds, a market source said.

Citigroup, JPMorgan and HSBC are the lead managers for the Regulation S deal. Deutsche Bank, Standard Chartered and NBK Capital are co-managers.

Biostime plans tap

China’s Biostime is planning to print a $150 million add-on to its existing 7¼% notes due June 21, 2021, according to a company filing.

Goldman Sachs is the bookrunner for the Rule 144A and Regulation S deal.

The proceeds will be used to fund an acquisition.

The original issue of $400 million notes priced in June at par.

Biostime, based in Guangzhou, provides pediatric nutritional and baby care products in China.

Argentine company seeks issuance

Aeropuertos Argentina is looking to sell up to $400 million of 10-year notes (B2), a market source said.

Morgan Stanley and Oppenheimer & Co. are the bookrunners for the deal.

Other details were not immediately available on Monday.

The issuer is a Buenos Aires-based transportation services company.

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